Business rates bills to plummet for Oxford Street stores - report
Any rare retail positive is well received. And those trading on some of central London’s most popular shopping streets could see £96 million slashed from their collective business rates due to an impending revaluation.
It comes as a long-awaited change to property taxes take effect. So retailers on Oxford Street, Regent Street, Bond Street, Kensington High Street, King’s Road, Knightsbridge and in Covent Garden will pay an estimated £222 million in business rates in the financial year to April 2024, down 30% on the prior 12 months, according to new research from property agent Knight Frank.
The reduction is as a result of the 2023 business rates revaluation, which comes into effect from 1 April, and based on rateable values from April 2021.
The study found retailers on Oxford Street will be the biggest beneficiaries, with their rates liability set to fall to £91 million from £151 million.
Rob Hargreaves, Knight Frank partner, central London retail, said the rates revaluation “could be the catalyst” some firms need to open debut stores or for existing brands to expand their footprint.
Properties in London are going to see an estimated 4% reduction in their business rates bill on average following new valuations and a five-year £13.6 billion government’s support package.
Next financial year the capital will see over £1.4 billion in rates support from a series of measures announced in the autumn statement, such as extending and increasing relief for retail, hospitality and leisure.
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